September 30 (SeeNews) - The European Investment Bank (EIB) said in Wednesday it signed a 25 million euro ($29.3 million) loan with Bulgaria's Fund for Local Authorities and Governments (FLAG), to be used to promote urban regeneration and rehabilitation in cities across the country.
FLAG will match the loan amount with 25 million euro of its own resources and channel the total sum of 50 million euro to Bulgarian municipalities, municipal enterprises and other institutions responsible for providing public services, the EIB said in a statement.
According to the statement, 20% of the investment is intended for energy efficiency and climate adaptation of Bulgarian cities. The supported projects are expected to create 1,500 jobs in the construction sector, EIB noted.
Through the loan provided by EIB, FLAG will support investments for upgrading local urban green areas and open public spaces, improving sustainable urban transport and renovating and reconstructing public buildings. FLAG will also focus on upgrading small-scale basic municipal infrastructure and climate change adaptation measures.
The loan will contribute to economic growth and job creation, reducing energy bills for consumers and increasing the attractiveness of urban areas as business locations and tourism destinations, EIB vice president Lilyana Pavlova said in the statement.
"The EIB’s support for Fund FLAG will also play an important role in its facilitation capacity so that additional EU structural funds can be absorbed by the respective beneficiaries with the goal of supporting urban development," Pavlova added.
The implementation of the platform will fill a financing gap for important investment projects in Bulgaria arising from municipal investment programmes, FLAG executive director Nadia Dankinova noted.
Fund FLAG was established in March 2007 as an instrument of the central government policy for regional development. It is targeting the Bulgarian municipalities' financing needs for investment projects implemented using grants under the operational programmes or other European schemes. FLAG provides bridge financing and long-term loans for the provision of own contributions.
($ = 0.854164 euro)